How can i find out if i can file exempt for federal, without owing at end of year?

Answer 1

Easy. If you think that you might owe, you don't qualify for EXEMPT status.

To qualify for EXEMPT, you must have had $0 tax liability last year and reasonably expect to have $0 tax liability this year. That does NOT mean you're just getting a refund; the Total Tax line your return must show $0. If you don't meet BOTH conditions, you may NOT claim EXEMPT.

Answer 2

Is it rare to be eligible to file exempt for federal without owing. To find out what the tax on your year to date pay would be, go to irs.gov and search for the Circular E. This publication should have all the tax tables. If you do not find that, then search for W-4 exempt. Good luck.

Answer 3

You need to have an idea of what your taxable income is going to be at the end of the year. If you only qualify for the standard deduction, then you could claim exempt status if you earn $5,350 or less. If you qualify for other deductions, you could earn more.

The key points for claiming exempt is that you did not pay tax last year and you do not anticipate paying taxes in the current year.

Answer 4

If you had any tax liability last year, then you're not eligible to file exempt.

If nothing much has changed from last year, and you didn't have any tax liability last year, then you probably can file exempt.